popular articles

U.S. Carbon Black Market: Growing Uncertainty Amid Industrial Tensions

In the United States, the carbon black market faces unprecedented fluctuations in the first half of 2025, driven by declining industrial demand and persistent raw material volatility, casting doubts over the sector's future stability.

Please share:

The U.S. carbon black market, a critical material in tire and plastic manufacturing, is navigating a challenging period at the start of this year. Faced with heightened oil price volatility and disruptions from American customs policies, the sector struggles to stabilize its economic forecasts. This situation is notably reflected by a decline from USD 1,818 to USD 1,782 per tonne between late 2024 and March 2025, according to recent data. Annual contracts still mitigate broader price fluctuations, but spot transaction prices show significant declines, leading to increased caution among industry stakeholders.

Demand Weakened by Trade Tensions

The tire industry, accounting for roughly 70% of total carbon black consumption, directly experiences the effects of trade restrictions and tariffs on imported tires, primarily from Asia. These measures have led to reduced domestic production, mechanically impacting demand for carbon black. Several major market players report a notable decrease in ordered volumes compared to the previous year, rendering short-term forecasts particularly uncertain.

Suppliers must also contend with stagnant demand from related industries such as technical plastics and rubbers, limiting immediate improvement prospects. Faced with this situation, some companies adopt a cautious strategy, waiting for tangible signs of industrial recovery before scaling up production. The elevated carbon black inventory accumulated over recent months also compels companies to maintain a conservative approach.

Increasing Pressure from Energy Costs

Simultaneously, the cost of raw materials, particularly heavy hydrocarbons used to produce carbon black, remains unpredictable. The ongoing fluctuation of crude oil prices, steadily rising during the first quarter, further exacerbates this uncertainty. Sector companies face difficulties fully transferring these additional costs to their industrial clients, who are already constrained by tight budgets. Consequently, producer margins are progressively narrowing, weakening their short-term investment capabilities.

This cost pressure is prompting some industry players to reconsider their business models, temporarily adjusting production volumes or exploring new methods to optimize logistics chains. In this tense environment, planned investments for upgrading production equipment are often postponed, underscoring a market waiting for clearer signals regarding medium-term stability.

The Second Quarter Remains Uncertain

The ongoing second quarter of 2025 continues to reflect accumulated uncertainties. Although certain analysts anticipate a slight seasonal recovery in June due to increased industrial orders, overall market sentiment remains cautious. Traditional July shutdowns, linked to major factory summer holidays, could temporarily deepen the decline in orders.

This context leads carbon black market actors to remain particularly vigilant, continuously adjusting inventory levels and limiting long-term commitments. In the absence of clear signals regarding future oil pricing trends and commercial conditions, the entire sector remains in a holding pattern, primarily focusing on operational stability while closely monitoring economic indicators.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Washington cancels $3.7bn in federal subsidies for carbon capture

The US Department of Energy has cancelled 24 projects funded under the Biden administration, citing their lack of profitability and alignment with national energy priorities.
European and UK carbon markets paused this week as participants await clarity on future integration of both emissions trading systems.
European and UK carbon markets paused this week as participants await clarity on future integration of both emissions trading systems.
A consortium led by European Energy has secured prequalification for a Danish carbon capture and storage project in Næstved, aiming to remove 150,000 tons of CO₂ per year under a national subsidy programme.
A consortium led by European Energy has secured prequalification for a Danish carbon capture and storage project in Næstved, aiming to remove 150,000 tons of CO₂ per year under a national subsidy programme.
The joint project by Copenhagen Infrastructure Partners and Vestforbrænding is among ten initiatives selected by the Danish Energy Agency for public carbon capture and storage funding.
The joint project by Copenhagen Infrastructure Partners and Vestforbrænding is among ten initiatives selected by the Danish Energy Agency for public carbon capture and storage funding.

One Exchange launches OX CO₂, a new platform for carbon trading

Canadian broker One Exchange partners with Stephen Avenue Marketing to create OX CO₂, a carbon trading platform combining digital technology and human expertise.
Russia has filed a complaint with the World Trade Organization (WTO) challenging the European Union's Carbon Border Adjustment Mechanism (CBAM), deeming it discriminatory and protectionist towards its strategic commodity exports.
Russia has filed a complaint with the World Trade Organization (WTO) challenging the European Union's Carbon Border Adjustment Mechanism (CBAM), deeming it discriminatory and protectionist towards its strategic commodity exports.
BP recommends extending the UK emissions trading system through 2042 and calls for alignment with the European market while supporting the inclusion of carbon removals in the scheme.
BP recommends extending the UK emissions trading system through 2042 and calls for alignment with the European market while supporting the inclusion of carbon removals in the scheme.
Aker takes over Aker Carbon Capture’s stake in SLB Capturi for NOK635mn, ahead of a NOK1.7bn distribution and company dissolution.
Aker takes over Aker Carbon Capture’s stake in SLB Capturi for NOK635mn, ahead of a NOK1.7bn distribution and company dissolution.

Enagás and Calcinor join forces to capture up to 900,000 tonnes of CO2

The partnership aims to develop a full logistics chain for CO2 capture, transport, liquefaction and storage, focused on Calcinor’s industrial operations.
In response to increasingly stringent environmental regulations, the world's leading oil companies are significantly boosting their investments in carbon capture and storage (CCS) technologies, reshaping their industrial and financial strategies.
In response to increasingly stringent environmental regulations, the world's leading oil companies are significantly boosting their investments in carbon capture and storage (CCS) technologies, reshaping their industrial and financial strategies.
HYCO1 and Malaysia LNG Sdn. Bhd. have signed a memorandum of understanding for a carbon dioxide (CO2) capture and utilization project in Bintulu, Malaysia, aiming to transform 1 million tons of CO2 per year into low-emission syngas.
HYCO1 and Malaysia LNG Sdn. Bhd. have signed a memorandum of understanding for a carbon dioxide (CO2) capture and utilization project in Bintulu, Malaysia, aiming to transform 1 million tons of CO2 per year into low-emission syngas.
Carbon Capture, Utilization, and Storage (CCU) technologies are gaining traction in hard-to-decarbonize industrial sectors, offering innovative and economically viable solutions. The Oxford Institute for Energy Studies report explores these new pathways.
Carbon Capture, Utilization, and Storage (CCU) technologies are gaining traction in hard-to-decarbonize industrial sectors, offering innovative and economically viable solutions. The Oxford Institute for Energy Studies report explores these new pathways.

Australian Elections: Carbon Market Braces for Major Political Shock

The outcome of Australia's elections could redefine national carbon market regulations, potentially triggering significant shifts in emissions reduction policies, directly impacting local carbon credit prices (ACCU).
According to the latest data from S&P Global Commodity Insights, voluntary carbon markets experienced a significant contraction, with renewable credit retirements dropping by 34% in March and issuances decreasing by half.
According to the latest data from S&P Global Commodity Insights, voluntary carbon markets experienced a significant contraction, with renewable credit retirements dropping by 34% in March and issuances decreasing by half.
Telecom operators and data centres recorded a rise in greenhouse gas emissions in 2023, diverging from the national decline reported during the same year.
Telecom operators and data centres recorded a rise in greenhouse gas emissions in 2023, diverging from the national decline reported during the same year.
Fidelis Infrastructure has entered a 15-year agreement with Microsoft to supply biomass-based carbon capture solutions in Baton Rouge, marking the world’s largest permanent carbon removal transaction to date.
Fidelis Infrastructure has entered a 15-year agreement with Microsoft to supply biomass-based carbon capture solutions in Baton Rouge, marking the world’s largest permanent carbon removal transaction to date.

Denmark grants Norne an exploration licence for CO₂ storage

The Danish government has granted Norne Thorning Storage an exploration licence to assess the Thorning geological structure for potential underground carbon dioxide storage by 2030.
Gevo and Future Energy Global have signed a multi-year agreement covering carbon credits from sustainable aviation fuels, supporting the construction of a new production facility in the United States.
Gevo and Future Energy Global have signed a multi-year agreement covering carbon credits from sustainable aviation fuels, supporting the construction of a new production facility in the United States.
In Brasilia, China and India urged BRICS members to resist carbon taxes and trade measures imposed without international consensus, calling for stronger existing multilateral frameworks.
In Brasilia, China and India urged BRICS members to resist carbon taxes and trade measures imposed without international consensus, calling for stronger existing multilateral frameworks.
Subsea7 has been awarded a major contract by Equinor for Phase 2 of the Northern Lights project, involving the installation of a CO2 pipeline offshore Norway, with operations scheduled for 2026 and 2027.
Subsea7 has been awarded a major contract by Equinor for Phase 2 of the Northern Lights project, involving the installation of a CO2 pipeline offshore Norway, with operations scheduled for 2026 and 2027.

Northern Lights to invest €660 mn to triple annual CO2 storage capacity

Norwegian joint venture Northern Lights, backed by Equinor, Shell and TotalEnergies, will invest NOK7.5bn to expand its CO2 storage infrastructure following a new industrial contract signed in Sweden.
Japanese conglomerate Mitsubishi Corporation has entered into a strategic partnership with Alt Carbon to scale up carbon dioxide removal across South Asia through an emerging mineral-based technology.
Japanese conglomerate Mitsubishi Corporation has entered into a strategic partnership with Alt Carbon to scale up carbon dioxide removal across South Asia through an emerging mineral-based technology.
British and European carbon markets extended gains, boosted by geopolitical tensions and prospects of aligning emissions trading systems.
British and European carbon markets extended gains, boosted by geopolitical tensions and prospects of aligning emissions trading systems.
Carbon Mapper and Planet Labs PBC will provide satellite data to California in support of a public programme targeting emission reductions in high-intensity sectors.
Carbon Mapper and Planet Labs PBC will provide satellite data to California in support of a public programme targeting emission reductions in high-intensity sectors.

Advertising